NEW DELHI: India’s economic growth remained resilient in 2024, with projections reflecting a strong trajectory despite global challenges. The finance ministry estimates a 6.5% GDP growth rate for the fiscal year 2024-25, while the World Bank’s India Development Update forecasts an even higher 7% growth, solidifying India’s position as the world’s fastest-growing major economy.
India is currently the fifth-largest economy in the world, with a GDP of $3.89 trillion at current prices, growing at an impressive rate of 8.2 percent in FY 23/24.
Industrial and trade developments
India’s finished steel imports reached an eight-year high, with China supplying a record 1.96 million metric tons in the first eight months of FY 2024-25, marking a 22.8% year-on-year increase. Total steel imports surged 26.6% to 6.5 million metric tons during the same period, raising concerns among domestic producers about the influx of cheap steel from China.
Geopolitical developments, global influence
India made significant diplomatic strides in 2024. Prime Minister Narendra Modi became the first Indian PM to visit Ukraine amid the Russia-Ukraine war, while President Droupadi Murmu made a historic visit to Fiji. India also hosted the third edition of the Voice of the Global South Summit, attended by 100 nations, and strengthened ties through a free trade agreement with Iceland and a bilateral investment treaty with the UAE.
Employment trends
The manufacturing, trade, and services sectors added 11 million jobs in 2024, increasing total employment to 120.6 million, up from 109.6 million the previous year.
Financial markets and monetary policy
The Reserve Bank of India maintained key interest rates, prioritizing a balance between economic growth and inflation control.
In 2024, India surpassed China as Asia’s leading market for IPOs, driven by strong equity fundraising and rising stock prices.
Digital payments: UPI transactions
The Unified Payments Interface (UPI) continued its dominance in digital payments, with transactions reaching an unprecedented Rs 18.41 trillion in January 2024. UPI has grown at a CAGR of 129%, from 92 crore transactions in FY 2017-18 to 13,116 crore in FY 2023-24. Between April and August 2024, transaction volumes totaled 7,062 crore, underscoring the platform’s widespread adoption.
India’s global stature was further bolstered by re-election to the UN Peacebuilding Commission and Modi receiving the Order of Excellence from Guyana.
Defence and security budget
The ministry of defence received its highest-ever allocation of Rs 6.22 trillion, marking a 4.79% increase from the previous year. Key investments focused on equipment modernization and boosting domestic manufacturing.
Missile test success
India successfully tested its first long-range hypersonic ballistic missile in 2024, enhancing its defense capabilities. The Global Firepower Index ranked India as the fourth-strongest military globally, with a Power Index score of 0.1023.
Women’s economic empowerment
The Union Budget allocated Rs 3 trillion to women-focused schemes. The number of women tax filers surged by 25%, and over 1.1 million women joined the ranks of “Lakhpati Didis,” achieving significant financial independence.
Rising workforce participation
Women accounted for 2.8 crore job applications in 2024, marking a 20% increase from 2023, according to the “India at Work 2024” report. This shift, alongside a 25% overall surge in job applications, highlights women and youth driving workforce participation.
